EUR/GBP Price Analysis: Consolidates amidst the lack of direction, hovers around 0.8600

• EUR/GBP rebounds after two consecutive losses but struggles to close above 0.86, indicating potential selling pressure.
• Technical analysis shows the pair as neutral to downward biased, with EMAs acting as resistance levels.
• Bearish scenario if EUR/GBP breaks below 0.8576 and targets June’s low of 0.8536, with further support at the YTD low of 0.8518.

The EUR/GBP snaps two days of consecutive losses, gained some 0.13% on Monday but failed to print a daily close above the 0.86 figure. Therefore, the EUR/GBP could be exposed to selling pressure. At the time of writing, the EUR/GBP is trading at 0.8598 post modest gains of 0.02%.

EUR/GBP Price Analysis: Technical outlook

The EUR/GBP daily chart portrays the pair as neutral to downward biased. On the upside is capped by the 50, 100, and 200-day Exponential Moving Averages (EMAs), each at 0.8643, 0.8689, and 0.8693, respectively. Conversely, the 20-day EMA 0.8596 acts like a magnet, with the EUR/GBP cross wavering around it as the pair struggles to get direction.

Of note, the EUR/GBP printed successive series of higher-highs, higher-lows, but until the pair cracks the 50-day EMA and above June’s 28 swing high of 0.8658, the EUR/GBP could be subject to selling pressure and extending its losses.

A EUR/GBP bearish scenario could happen if the pair breaks below the June 30 daily low of 0.8576 and extends its losses past the June 23 low of 0.8536. Once cleared, the next support into lay would be the year-to-date (YTD) low of 0.8518.

Conversely, the EUR/GBP would turn bullish above 0.8658, with the confluence of the 100/200-day EMAs around 0.8689-93, ahead of the 0.8700 figure. A decisive break will expose 0.8800.

EUR/GBP Price Action – Daily chart